Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


English still spooked by debt test for tax cuts

Hon Dr Michael Cullen

Minister of Finance

9 April 2008 Media Statement

English still spooked by debt test for tax cuts

John Key’s admission that he will ‘out tax cut’ Labour at any cost is causing problems for Bill English, Finance Minister Michael Cullen said today.

Mr English has sought to cast doubt on the importance of the government’s 20 per cent of GDP gross debt target in recent days following Mr Key’s statements that National will out-spend Labour on tax cuts regardless of what the government announces in next month’s Budget.

“The Labour-led government will not borrow for tax cuts,” Dr Cullen said.

“Our medium term debt target is to have gross debt sit around 20 per cent of GDP. The unexpected strength of the economy in recent years meant that debt has for a time fallen under that target.

“Next month's budget will re-affirm and achieve that target, will continue our investment in services and superannuation, and will include a three year programme of personal tax cuts.

“John Key has said he wants debt to rise to 25 per cent of GDP to pay for tax cuts, a move that would cost $700 million a year in extra debt servicing costs.

“Mr Key has said he is not capable of expressing a personal view, so it must be National Party policy to increase debt to 25 per cent of GDP. If that is the case, Mr English should probably avoid trumpeting his debt credentials.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Political Twins, And On Labour Extending Its Wage Subsidy Scheme

A quick quiz for the weekend. Which political party currently represented in Parliament issued a press release yesterday that contained these stirring passages:
“[We have] long supported a free trade and free movement area between Canada, Australia, New Zealand, and the United Kingdom…on trade, immigration and investment, New Zealand must favour countries who share our values. New Zealand must do its part to reinforce freedom and democracy around the world by diversifying our markets and building stronger relationships with those who share our values... More>>


Parliament Adjourns: Adjournment Debate: Speaker Trevor Mallard

The 52 Parliament has sat for the last time before the September Election. It sat for 245 days... More>>


E-Cigarettes: Vaping Legislation Passes

Landmark legislation passed today puts New Zealand on track to saving thousands of lives and having a smokefree generation sooner rather than later, Associate Health Minister, Jenny Salesa says. The Smokefree Environments and Regulated Products (Vaping) ... More>>


National: $4 Billion Investment To End Wellington’s Congestion Woes

A National Government will invest another $4 billion in transport infrastructure across Wellington, igniting the economy and delivering the congestion-busting solutions the region has long been crying out for, National Party Leader Judith Collins says. ... More>>


Gordon Campbell: On The Virtues (and Fluffed Opportunities) Of The Operation Burnham Report

One unspoken rule of thumb in any official public inquiry is : whatever you do, don’t conclude you were made to listen to “a litany of lies” even if the evidence of a deliberate cover-up is right there under your nose. In that respect, the report ... More>>


Horizon Research Limited: How Judith Collins Stopped The Bleeding

Horizon Research includes questions on voting from time to time in its surveys – for both forthcoming referenda and general elections. More>>

Your Vote 2020: Bringing Election Coverage To Viewers Across TVNZ Channels And Platforms

As New Zealand gets ready to head to the ballot box this September, 1 NEWS is bringing voters comprehensive coverage and analysis of this year’s General Election. TVNZ’s coverage will draw on the depth of experience held across the 1 NEWS team, says Graeme ... More>>

Economy: 30% Believe Households Worse Off, 298,000 Expect To Lose Jobs

64% of New Zealanders feel the economic position of their households is the same or better than a year ago – and 30% think it is worse or much worse, while 298,000 think they will lose their jobs in the next 12 months. Households’ perceptions ... More>>

State Services Commission: Findings Of Investigation Into COVID-19 Active Cases Privacy Breach

Deputy State Services Commissioner Helene Quilter has today announced the findings of an investigation into a breach of privacy regarding sensitive personal information. The investigation looked into who or what caused the disclosure of the information, ... More>>

International Security: New Zealand Suspends Extradition Treaty With Hong Kong

The New Zealand Government has suspended its extradition treaty with Hong Kong and made a number of other changes in light of China’s decision to pass a national security law for Hong Kong, Foreign Affairs Minister Winston Peters says. More>>






InfoPages News Channels